Web Creations, a Website design and maintenance company, uses job-costing system has a single direct-cost category (professional services) and a single indirect-cost pool (client support). Client support costs are allocated to individual jobs using actual professional service-hours. Budgeted and actual amounts for 2004 are as
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Please help with the following problem. Dr. Giles is a dentist who deducted losses for her horse breeding activity for 15 years. In 14 of the 15 years, she sustained a loss for tax reporting purposes. As a result of an audit, she took the IRS to task in Tax Court in 2006. She lost her case because she did not satisfactori
Joyce received a Form 1099 for her gambling winnings in the amount of $2100. Joyce is not a professional gambler. a. is the income subject to self employment tax? b. what type of income is it for tax reporting? c. can Joyce deduct any amounts against her gambling income? d. where would expense amounts be reported on a
1- If the going concern assumption is not made in accounting, discuss the differences in the amounts shown in the financial statements for the following items. a- land b- Unamortized bond premium c- Depreciation expense on equipment d- Merchandise inventory e- Prepaid Insurance 2-What accounting assumption principle o
On January 1, 2006, Solomon Company purchased the following two machines for use in its production process. Machine A: The cash price of this machine was $38,500. Related expenditures included: sales tax $2,200, shipping costs $175, insurance during shipping $75, installation and testing costs $50, and $90 of oil and lubricant
Problem 1 If merchandise purchased on account is returned, the buyer may inform the seller of the details by issuing: A. A debit memorandum B. A credit memorandum C. An invoice D. A bill Problem 2 If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30, and the seller prepays
I need some help figuring out how to do these calculations. I attached the balance sheet and growth assumptions as well as a spreadsheet. Laredo Railroad Financial Data Laredo Balance Sheet (amounts in thousands, except per share amounts) as of December 31 1998 1999 ASSETS Current assets Cash and cash
PLEASE HELP ON HOW TO ARRIVE ON THIS PROBLEM Unsafe Insurance Company needs to forecast its personnel department costs. The following output was obtained from a regression program used to estimate the department's costs as a function of the number of employees: SUMMARY OUTPUT Dependent variable = Personnel costs Regres
Choose from the following list the term which best describes the presentation of the item on the financial statements of Gordon Corporation for 2008. C: Change in estimate P: Prior period adjustment (not due to change in principle) R: Retrospective type accounting change with note disclosure N: None of the above 1. In
Green Industries (a sole proprietorship) sold three SS1231 assets during 2005. Data on these property dispositions are as follows: Asset Cost Acquired Depreciation Sold for Sold on Rack $100,000 10/10/01 $60,000 $135,000 10/10/05 Forklift $35,000 10/16/02 $23,000 $
Accounting for Income Taxes a. Roberts Corp. reports pretax accounting income of $200,000, but due to a single temporary difference, taxable income is only $150,000. At the beginning of the year, no temporary differences existed. Roberts is subject to a tax rate of 40%. Required: Prepare the compound journal entry to reco
A. Pension data for Sam Adams Inc. include the following for the 2005 calendar year: Discount rate, 9% Expected return on plan assets, 9% Actual return on plan assets, 8% Service cost $400,000 January 1: PBO 3,000,000 ABO 2,000,000 Plan assets 3,200,000 Amortization of prior service cost 30,000 Amortization of net
Accounting changes and error corrections: a. Macintosh Inc. changed from LIFO to the FIFO inventory costing method on January 1, 2006. Inventory values at the end of each year since the inception of the company are as follows: FIFO LIFO 2004 $200,000 $180,000 2005 400,000 360,000 Requi
On December 31, 2005, Brisbane Company had 100,000 shares of common stock outstanding and 30,000 shares of 7%, $50 par, cumulative preferred stock outstanding. On February 28, 2006, Brisbane purchased 24,000 shares of common stock on the open market as treasury stock paying $40 per share. Brisbane sold 6,000 treasury shares on
1. You are given the following data; k* = real risk-free rate = 4.0% Constant inflation premium = 7.0% Maturity risk premium = 1.0% Default risk premiums for AAA bonds = 3.0% Liquidity premium for long-term = 2.0% Assume that a highly liquid market does NOT exist for long-term US Treasury bonds, and the expected
Tax issues for IRA deductions. See attached file for full problem description.
Tax deductions: moving and office in the home. See attached file for full problem description.
Tax deductions: Employee business expenses: entertainment and gifts. See attached file for full problem description.
23. Fran, who is self-employed, drove her automobile a total of 40,000 business miles in 2006. She also has receipts for business-related use as follows: Parking - $500 Fuel - 900 Tolls - 200 Fran has an AGI for the year of $50,000. If Fran uses the standard mileage rate method, she can deduct a. $17,800 b. $18,300
21. Mr. and Mrs. South's adjusted gross income was $85,000. During the year they incurred and paid the following: Publications (unreimbursed and related to employment) - $500 Tax return preparation fee - 1,000 Professional dues - 1,200 Fees for will preparation (no tax advice) - 800 Life insurance premiums - 1,400 Assu
Tax deductions: medical costs of home improvement. See attached file for full problem description.
Tax deductions: employee business expenses and cosmetic surgery. See attached file for full problem description.
Tax calculations: long and short term capital gains/losses. See attached file for full problem description.
Tax transactions: basis of assets, basis in stocks sold. See attached file for full problem description.
Below is the sales forecast for Cooper Inc. for the first four months of the coming year. Jan Feb Mar Apr Cash sales.......... $ 15,000 $ 24,000 $ 18,000 $ 14,000 Credit sales........ $100,000 $120,000 $ 90,000 $ 70,000 On average, 50% of credit sal
The budgeted amount of raw materials to be purchased is determined by: - adding the desired ending inventory of raw materials to the raw materials needed to meet the production schedule. - subtracting the beginning inventory of raw materials from the raw materials needed to meet the production schedule. - ad
Butteco Corporation has provided the following cost data for last year when 100,000 units were produced and sold: Raw materials ...................................... $200,000 Direct labor .......................................... 100,000 Manufacturing overhead ....................... 200,000 Selling and ad
Stewart Company is attempting to classify costs according to their cost behavior. Data concerning activity and costs are listed below: January February Sales in units........... 1,200 1,400 Maintenance........... $ 600 $ 700 Supplies.................. 750 790 Insurance............
Accounting Problems. Classification of product cost and period cost, statement of cash flows for Millco, income statement and balance for Aron Concrete, and cash budget of Ritewell Publishers. See attached file for full problem description. Bright, Inc., a producer of educational toys for children, incurs the following
Please see attached for full problem. 1. Based on what you have learned regarding ABC costing, please help Mary prepare a revised cost report by: a. Computing the overhead rate for various activities in the spirit of ABC b. Preparing a new cost report for the three products c. In your opinion how many cost pools will be s